Series 79: Short Tendering

Taken from our FINRA Investment Banking Exam

Definition of the term Short Tendering...

a prohibited practice with regard to partial tender offers. It occurs when a shareholder tenders more shares than he has to deliver. A shareholder might do this out of a belief that the tender offer will receive more tenders than the offeror seeks to purchase. By tendering additional shares, the short tenderer hopes to have a greater percentage of his shares purchased. Compare to hedged tendering.

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